Economics and politics - comment and analysis

Romania, a new crisis, an old realisation: Eastern Europe is caught in the appreciation trap

If there is one constant in Eastern Europe, it is the lack of constancy. Nowhere else are there such frequent changes of government or desperate attempts to form a functioning government through one snap election after another. Bulgaria, for instance, had gone through a striking series of snap elections before the vote two weeks ago at least offered hope of forming a government capable of governing.  …

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Hungary after 16 years of Orbán: Still no escape from the currency appreciation trap

14. April 2026 I General

It is quite astonishing: Viktor Orbán’s heyday in Hungary began when, following the end of massive currency speculation (carry trades) that had massively overvalued the Hungarian forint, the forint plummeted and left many homeowners who had taken on debt in foreign currencies (Swiss francs or Japanese yen) due to low interest rates in enormous difficulty. …

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